#沃什推动缩减前瞻指引和点阵图 🚨 The Federal Reserve has been backed into a corner.
🇺🇸 U.S. PPI was just released, and the results were far worse than expected: PPI surged to 6.3%, its highest level since December 2022. Yesterday, both CPI and core CPI came in above expectations. Today, PPI inflation has surged again—there’s simply no sign of inflationary pressure easing.
Meanwhile, the economy is slowing, and the labor market continues to deteriorate.
Tomorrow, Kevin Warsh is set to speak, and he’s in a serious bind: he promised to bring inflation down to 2%, but under current conditions, that would be nearly impossible without significantly raising interest rates. But if the Fed hikes rates while the economy is already weak, consumers will suffer even more, and it could even push the economy straight into a recession.
Inflation remains stubbornly high as the economy grows increasingly chilly. The Federal Reserve is facing its most dangerous dilemma yet.
🇺🇸 U.S. PPI was just released, and the results were far worse than expected: PPI surged to 6.3%, its highest level since December 2022. Yesterday, both CPI and core CPI came in above expectations. Today, PPI inflation has surged again—there’s simply no sign of inflationary pressure easing.
Meanwhile, the economy is slowing, and the labor market continues to deteriorate.
Tomorrow, Kevin Warsh is set to speak, and he’s in a serious bind: he promised to bring inflation down to 2%, but under current conditions, that would be nearly impossible without significantly raising interest rates. But if the Fed hikes rates while the economy is already weak, consumers will suffer even more, and it could even push the economy straight into a recession.
Inflation remains stubbornly high as the economy grows increasingly chilly. The Federal Reserve is facing its most dangerous dilemma yet.